Two private banks in Uzbekistan, Capital Bank and Ravnak Bank, have gained approval from the National Agency for Prospective Projects (NAPP) to partake in a digital sandbox focused on cryptocurrency regulation. These banks are set to introduce plastic encryption cards , backed by Mastercard.
On August 14, NAPP's report confirmed the inclusion of Ravnaq Bank in the pilot initiative. This follows an earlier announcement in May 2023 that Kapital Bank would also issue crypto cards.
The upcoming Uzbek crypto card, named UzNEX, will offer a fusion of a bank account with access to cryptocurrency exchanges and automated exchange mechanisms. The card will rely on Mastercard, a global leader in payment systems.
The slated timeframe for the official launch of the cryptocurrency cards by both banks is December 2023. Kapital Bank and Ravnaq are among the three entities registered as participants in the national digital sandbox. As of 2023, the Uzbek government will limit the provision of crypto services to licensed crypto companies. The first licenses are set to be granted to local cryptocurrency firms in November 2022. Prior to these developments, Uzbekistan had restricted the access of several major international cryptocurrency exchanges like Binance, FTX, and Huobi due to alleged unlicensed operations.
This regulatory approach to cryptocurrencies in the country began with a presidential decree in 2022, in which NAPP aimed to regulating the digital asset industry. . The decree also enCompaSses Comprehensive Legal Aspects Concerning Cryptocurrency MiningS Within UzBekistan.
